Enterprise Buys In Montana

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$2.1MM
Description

Purchase of nearly 47,000 net acres of oil and gas leases in Cascade County, Montana.

Enterprise Energy Resources Ltd. (TSXV: EER) completed the acquisition through its wholly owned US subsidiary, Evolution Oil Group LLC, of approximately 46,695 net acres of oil and gas leases in Cascade County, Montana, from an arm's length third party.

Evolution holds a 100% working interest in the leases, the majority of which have a 10-year term. As consideration for the leases, Evolution will pay the seller US $45 per net mineral acre for an aggregate purchase price of approximately US $2.1 million.

Evolution has also agreed to pay the seller the following contingent consideration:

• A disposition bonus, payable in the event Evolution sells the leases, in an amount equal to approximately 30% of the net profit realized by Evolution in connection with such disposition.

• A production bonus, payable should Evolution, as operator, commence commercial production of hydrocarbons on the lands covered by the leases, in an amount equal to US $1.5 million.

Based in Vancouver, British Columbia, Enterprise Energy Resources Ltd. engages in the exploration, development, and production of petroleum and natural gas.